Endeavour Group (ASX:EDV) Interest Coverage : 5.71 (As of Dec. 2023)

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What is Endeavour Group Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Endeavour Group's Operating Income for the six months ended in Dec. 2023 was A$337 Mil. Endeavour Group's Interest Expense for the six months ended in Dec. 2023 was A$-59 Mil. Endeavour Group's interest coverage for the quarter that ended in Dec. 2023 was 5.71. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Endeavour Group's Interest Coverage or its related term are showing as below:

ASX:EDV' s Interest Coverage Range Over the Past 10 Years
Min: 4.01 Med: 5.8 Max: 11.22
Current: 4.01

ASX:EDV's Interest Coverage is ranked worse than
74.69% of 162 companies
in the Beverages - Alcoholic industry
Industry Median: 8.79 vs ASX:EDV: 4.01

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Endeavour Group Interest Coverage Historical Data

The historical data trend for Endeavour Group's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Endeavour Group Interest Coverage Chart

Endeavour Group Annual Data

Trend

Jun21

Jun22

Jun23

Interest Coverage

4.88

11.22

5.80

Endeavour Group Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial			15.82	6.00	11.79	1.56	5.71

Competitive Comparison of Endeavour Group's Interest Coverage

For the Beverages - Wineries & Distilleries subindustry, Endeavour Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Endeavour Group's Interest Coverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Endeavour Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Endeavour Group's Interest Coverage falls into.

Endeavour Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Endeavour Group's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Endeavour Group's Interest Expense was A$-70 Mil. Its Operating Income was A$406 Mil. And its Long-Term Debt & Capital Lease Obligation was A$5,566 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	406	/	-70
	=	5.80

Endeavour Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Endeavour Group's Interest Expense was A$-59 Mil. Its Operating Income was A$337 Mil. And its Long-Term Debt & Capital Lease Obligation was A$5,296 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	337	/	-59
	=	5.71

The higher the ratio, the stronger the company's Financial Strength is.

Endeavour Group (ASX:EDV) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Endeavour Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of Endeavour Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Endeavour Group (ASX:EDV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Endeavour Group Ltd (ASX:EDV) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

EDVGF:USA 6BH:Germany

Address

26 Waterloo Street, Surry Hills, NSW, AUS, 2010

Website

https://www.endeavourgroup.com.au

Endeavour Group Ltd is an investment in wide-moat-rated Endeavour Group provides investors with exposure to one of the well-entrenched dividend-paying businesses in the Australian retail landscape. Following decades of enduring organic growth through store rollouts, Endeavour's off-premises retail segment—with more than 1,600 retail outlets mainly across its Dan Murphy's and BWS brands—accounts for approximately half of all off-premises retail liquor sales within Australia. Endeavour's immense scale in the off-premises retail segment is unrivaled within Australia. Indeed, Endeavour's sales are almost three times larger than its nearest retail competitor, Coles.

Endeavour Group (ASX:EDV) Headlines

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